The big picture risk is geopolitics. But in terms of more narrowly focused financial economic risks, in my view, if there is a real casualty coming out of this monetary tightening cycle, it's most likely to be private equity and private credit.
Welcome to the Hale Report. My name is Lyric Hughes Hale, Editor-in-Chief of econVue, based in Chicago. econVue is a home for independent voices and expert analysis of critical global economic issues.
My guest for the 55th episode of the Hale Report is Christopher Wood, the author of Greed & Fear, the legendary financial newsletter he began in 1996 while at CLSA. His letter comes with an equally legendary caution against forwarding to others, adding to its must-read cachet. Â
It is not surprising that Chris’s writing is so engaging. He began as a journalist at the Far Eastern Economic Review, then served as bureau chief in both New York and Tokyo for the Economist. He now serves as the peripatetic and deeply knowledgeable Global Head of Equity Strategy at Jefferies, the investment bank.
Chris Wood has an impressive track record. He is one of the very few analysts who foresaw the Global Financial Crisis, a view rooted in his concerns about debt securitization.
Today, he worries about increased levels of investment in private equity and debt. This is not just a problem for high net worth individuals. Insurance companies and pension funds have significantly increased their holdings of these types of illiquid assets.
Chris doesn’t give many interviews, so this conversation was a unique opportunity to discuss liquidity, inflation, interest rates, and the curious case of Japan with a veteran analyst in order to assess both risks and opportunities amid increasing geopolitical uncertainty.
I asked Chris about the risks we are ignoring. To hear his pithy, sometimes humorous, and always well-researched comments, you are cordially invited to listen to this podcast. And by the way, unlike Chris’s newsletter, you are welcome to share this episode, which is very much focused on… Greed & Fear.
And thank you to the people behind the scenes who make EconVue possible, especially our producer, Sam Fu.
If you’d like to subscribe to our newsletter, as well as receive notifications of our podcasts, please visit our website econVue.com and support us on Substack.
Christopher Wood: The Hale Report Ep. 55